« Bondholders will finance standalone AMR plan only if a new board is put in place | Main | AMR posts $164 million loss in October »

November 30, 2012

American asks for more time to file restructuring plan with bankruptcy court

In a filing made on Friday, American Airlines' parent company, AMR Corp., asked for more time to submit a restructuring plan.

The request was made jointly with the unsecured creditors committee and if granted, would give American the exclusive right to submit a restructuring plan to the court until March 11. Currently, American's exclusivity period ends on January 28.

"The relief requested will allow American to continue focusing on preserving and enhancing going concern values and restructuring American’s financial condition and operations to achieve a competitive and sustainable cost structure and, thus, achieve the objectives of chapter 11 – a successful rehabilitation.

"Extensions of the Exclusive Periods will enable American to further the cooperative relationship with the UCC, permit the satisfactory resolution of labor issues, including pension obligations, refresh American’s fleet, take other actions to enable the attainment of a competitive cost structure, analyze potential recoveries after thorough review and analysis of claims filed in accordance with the bar date order, and thoroughly review with the UCC all strategic alternatives," the filing said.

A court hearing on the motion has been tentatively scheduled for December 19.

American spokesman Sean Collins said the carrier has made significant progress in its restructuring.

"This work, while progressing well, takes time, and American and the unsecured creditors' committee believe that the proposed extension to March 11, 2013 is appropriate for this process to continue in an orderly and efficient manner," Collins said.

-Andrea Ahles

TrackBack

TrackBack URL for this entry:
http://www.typepad.com/services/trackback/6a00d8341c2cc953ef017ee5c5ed4d970d

Listed below are links to weblogs that reference American asks for more time to file restructuring plan with bankruptcy court:

Comments

Post a comment

Comments are moderated, and will not appear on this weblog until the author has approved them.

If you have a TypeKey or TypePad account, please Sign In.